What is a Non Fungible Token (NFT)?

Lesson 5


NFTs (or “non-fungible tokens”) are a unique cryptoasset in which each token is unique — as opposed to “fungible” assets like Bitcoin and dollar bills, which are all worth exactly the same amount. Because every NFT is unique, they can authenticate ownership of digital assets like artworks, recordings, and virtual real estate or pets. the unique identity and ownership of an NFT is verifiable via the blockchain ledger. Ownership of the NFT is often associated with a license to use the underlying digital asset, but rarely confers copyright to the buyer: some agreements only grant a license for personal, non-commercial use, while other licenses also allow commercial use of the underlying digital asset. Ownership of an NFT does not inherently grant copyright to whatever digital asset the token represents. An NFT is merely a proof of ownership that is separate from a copyright.